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Consider the following information: Rate of Return if State Occurs State of Probability of State Economy of Economy Stock A Stock B Recession .21 .015

Consider the following information:

Rate of Return if State Occurs
State of Probability of State
Economy of Economy Stock A Stock B
Recession .21 .015 .26
Normal .56 .095 .16
Boom .23 .150 .39

Requirement 1:

Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

Expected return
E(RA) ? %
E(RB) ? %

Requirement 2:

Calculate the standard deviation for the two stocks. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

Standard deviation
A ? %
B ? %

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